I’ve got a post at Point of Law detailing a judge’s ruling chastising, and imposing sanctions on, three lawyers (including one who’s fairly famous) who sued the oil company on behalf of supposed cancer victims in Ecuador; it turned out some of the victims 1) didn’t have cancer and 2) weren’t aware a suit was being filed in the U.S. in their name. (Oct. 25; and see Roger Parloff’s excellent post on the episode at Fortune “Legal Pad”).
Posts Tagged ‘oil industry’
“Lawsuit blames oil companies for hurricane damage”
The AP reports that a “lawsuit seeks what attorneys say could be billions of dollars from a long list of oil companies for damages to wetlands that allegedly would have softened Hurricane Katrina’s blow.” Attorneys from the New Orleans firm of St. Martin & Williams are seeking class-action status on behalf of all persons and entities in Louisiana that suffered injury from Katrina’s wind and storm surge. They’re naming as defendants 11 oil and gas companies including Shell Oil, ExxonMobil, Chevron and BP Corp. whose activities they say depleted marshlands, including by building and neglecting pipeline canals. (AP/Shreveport Times, Sept. 17; “Class-action suit filed against oil companies”, BizNewOrleans.com, Sept. 15).
Meanwhile, environmental litigation over the years aimed at slowing levee and flood-control projects could come under Senate scrutiny, despite peals of protest from the Sierra Club, Sen. Chuck Schumer and others (Dan Eggen, “Senate Panel Investigating Challenges to Levees”, Washington Post, Sept. 17; Jerry Mitchell, “Senate panel investigates levee lawsuits”, Jackson Clarion-Ledger, Sept. 17). See Sept. 9, Sept. 14 (& Baseball Crank).
Why we’re so short of refineries
Adrian Moore explains why no new refineries have been built in the U.S. since 1976, and not for lack of demand (“Katrina Reveals Gas Price Folly”, Orange County Register, Sept. 1, reprinted at Reason Foundation site) (via Instapundit). See Jun. 10, 2004.
Sunburst Works Refinery $41M verdict
In 1955, there was a gasoline pipeline leak at the Sunburst Works Refinery that caused minor contamination of a 19-acre underground site. Texaco cleaned the spill at the time, and did further millions of dollars of cleanup starting in 1993. State regulators determined that there was no health effects, and that benzene levels in Sunburst, Montana were no different than in areas unaffected by the spill. The state Department of Environmental Quality ruled that nothing more needed to be done beyond additional monitoring, not least because the groundwater at issue isn’t used for anything–even livestock find it “naturally too briny” to drink.
Not good enough, say some residents and their lawyers, who blame the half-century-old spill for a variety of illnesses from arthritis to mononucleosis. They sued to require additional multi-million dollar cleanup. The plaintiffs originally sought damages for decreased property values, though townpeople who refused to join the lawsuit say that the main cause of the decreased property values is bad publicity from the 2001 lawsuit. (There are only 82 plaintiffs in a town of about 400.) Texaco acknowledges responsibility for the spill, but disputed the need to spend millions more on a clean-up methodology of little efficacy. The judge refused to allow Texaco to introduce evidence that they did exactly what the Montana regulators asked them to do, and a jury awarded a $41 million verdict, including $25 million in punitive damages. Texaco will appeal. The case is important because the verdict could encourage other “double-whammy” lawsuits on companies who have already been spending millions to comply with the extensive state and federal environmental regulations. (Kathleen A. Schultz, “Texaco to appeal Sunburst ruling”, Great Falls Tribune, Aug. 20; “Jury Rules Against ChevronTexaco In Cleanup Suit”, Wall Street Journal, Aug. 20 (sub – $); Reuters, Aug. 20; Kathleen A. Schultz, “Texaco must pay Sunburst $41M”, Aug. 19; Kathleen A. Schultz, “Texaco-Sunburst trial gets under way”, Jul. 26).
New oil refineries? Forget it
No new oil refineries have been built in the United States since 1976 — not even in California, where capacity shortages have especially pinched. The reason is not the lack of demand, but the legal/regulatory environment. (Mike Angell, “Rules, Small Returns Block New Refineries”, Investor’s Business Daily, Jun. 10; Dale Kasler, “No new California refineries despite soaring gas prices”, AP/Oakland Tribune, Jun. 10).
Erin Brockovich watch
Erin Brockovich’s law firm has filed its third lawsuit against Beverly Hills, its school district and several oil and gas companies, claiming that emissions from an oil derrick on the Beverly Hills High School campus caused former students and others to develop high rates of cancer – or at least put them at greater risk of developing the disease. (“Brockovich Files Third Lawsuit in Cancer Case,” L.A. Times, Jan. 3; Associated Press, “Brockovich Firm Against Sues Beverly Hills,” lasvegassun.com, Jan. 3 ). City officials have disputed the claims.
The latest lawsuit filed in California state court lists nearly 300 plaintiffs, “a number” of which claim that they “do not have cancer but are at greater risk of developing the disease.” Earlier posts on the media-savvy paralegal’s environmental lawsuits can be found on Nov. 19, July 15, and elsewhere in this space.